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Chapter 1
INTRODUCTION TO FINANCIAL STATEMENT
ANALYSIS, ABOUT PROJECT & COMPANY
The subject of financial statement analysis is based on Generally Accepted
Accounting Principles (GAAP) which is refer to the standard framework of
guidelines for financial accounting used in any given jurisdiction; generally
known as accounting standards. Before preparing the financial statement we
should have to follow the principle of accounting that created by the GAAP. The
GAAP includes the standards, conventions, and rules accountants follow in
recording and summarizing, and in the preparation of financial statements.
Many countries use or are converging on the International Financial
Reporting Standards (IFRS), established and maintained by the International
Accounting Standards Board. In some countries, local accounting principles are
applied for regular companies but listed or large companies must conform to
IFRS, so statutory reporting is comparable internationally, across jurisdictions.
International Accounting Standards (IAS) IAS was issued between 1973
and 2001 by the Board of the International Accounting Standards
Committee (IASC). On April 1, 2001, the new IASB took over from the IASC the
responsibility for setting International Accounting Standards. During its first
meeting the new Board adopted existing IAS and Standing Interpretations
Committee standards (SICs). The IASB has continued to develop standards
calling the new standards International Financial Reporting Standards (IFRS).
The traditional assumptions of the accounting model is based on some
concepts such like as Going concern, Separate entity, Matching concepts,
accounting time period, Monetary unit, Realization and Materiality concepts.
A financial statement (or financial report) is a formal record of the
financial activities of a business, person, or other entity. In British English—
including United Kingdom company law—a financial statement is often referred
to as an account, although the term financial statement is also used, particularly
by accountants.
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For a business enterprise, all the relevant financial information, presented
in a structured manner and in a form easy to understand, are called the financial
statements. They typically include four basic financial statements, accompanied
by a management discussion and analysis:
Balance Sheet (Statementof Financial Position)
Income Statement(Statement of Comprehensive Income)
Statementof Changes in Equity
Statementof cash flows (reports on a company's cash flow activities)
Elements of FinancialStatements (IAS 1 article 10)
The financial position of an enterprise is primarily provided in
the Statement of Financial Position. The elements financial statements include:
Asset
Liability
Equity
Revenues
Expenses:
Objective of FinancialStatements
A financial statement should reflect true and fair view of the business
affairs of an organization. As statements are used by various constituents of the
society / regulators, they need to reflect true view of the financial position of the
organization. It is very helpful in many purposes such like as followings:
Check the financial position of the business for a specific period.
Current Cost Accounting.
Financial capital maintenance in nominal monetary units.
Financial capital maintenance in units of constant purchasing power.
To use financial statements to evaluate an organisation’s creditability.
To apply analytical tools and techniques to financial statements to obtain
useful information to aid decision making.
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After introducing the subject of financial statement analysis, now I want to
explore some thing about this project. The project of financial statement analysis
is complete set of all financial ratios which is explained in detail and practically
by the use of financial statements of GSK. Some important suggestions are also
given in the project while a finance manager can give after the analysis.
In this project all the ratios are discussed practically that are we studied
during the course. In this project I used the financial statements of GSK that is
pharmaceutical multinational company and ascertain the good financial position
in all years. But I selected its 5 years from 2007 to 2011 and apply the all ratios.
Firstly the introduction and history of GSK is mentioned on it and after this all
financial statement analysis is written.
Introduction of Glaxo Smith Kline
Glaxo Smith Kline (GSK) is a British multinational
pharmaceutical, biologics, vaccines and consumer healthcare company
headquartered in London, United Kingdom. It is the world's fourth-largest
pharmaceutical company measured by 2009 prescription drug
sales (after Pfizer, Novartis, and Sanofi).
It was established in 2000 by the merger of Glaxo Welcome plc (formed
from the acquisition of Welcome plc by Glaxo plc) and SmithKline Beecham
plc (formed from the merger of Beecham plc and SmithKline Beckman
Corporation, which was formed by combining the Smith Kline French and
Beckman companies).
GSK has a portfolio of products for major disease areas including asthma,
cancer, virus control, infections, mental health, diabetes, and digestive. It also has
a large consumer healthcare division which produces and markets oral healthcare
and nutritional products and over-the-counter medicines
including Sensodyne, Boost, Horlicks, and Gaviscon. In July 2012, GSK pleaded
guilty to criminal charges and agreed to a $3 billion settlement of the largest
health-care fraud case in the U.S. and the largest payment by a drug company in
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the US. The settlement is related to the company's illegal promotion of best-
selling anti-depressants.
GSK has a primary listing on the London Stock Exchange and is a
constituent of the FTSE 100 Index. As of 6 July 2012, it had a market
capitalization of £74.8 billion, the fifth-largest of any company listed on the
London Stock Exchange. It has a secondary listing on the New York Stock
Exchange.
History of GSK
GSK was formed in 2000 by the merger of Glaxo Wellcome plc (formed
from the acquisition of Wellcome plc by Glaxo plc), and SmithKline Beecham
plc (formed from the merger of Beecham plc and SmithKline Beckman
Corporation). Glaxo Wellcome
In 1880, Burroughs Wellcome & Company was founded in London by
the American pharmacists Henry Wellcome and Silas Burroughs. The Wellcome
Tropical Research Laboratories opened in 1902. In 1959, the Wellcome Company
bought Cooper, McDougall & Robertson Inc. to become more active in animal
health.
The Welcome Company production centre was moved from New York
to North Carolina in 1970, and the following year another research centre was
built. Glaxo was founded in Bunnythorpe, New Zealand, in 1904. Originally
Glaxo was a baby food manufacturer processing milk into a baby food of the
same name: the product was sold under the slogan "Glaxo builds bonny babies"
from 1908. Still visible on the main street of Bunnythorpe is a dairy factory
(factory for drying and processing cows' milk into powder) with the original
Glaxo logo clearly visible, it is now a car repair shop.
Glaxo became Glaxo Laboratories, and opened new units in London in
1935. Glaxo Laboratories bought two companies, Joseph Nathan and Allen &
Hanburys, in 1947 and 1958 respectively. After the company bought Meyer
Laboratories in 1978, it started to play an important role in the US market. In
1983 the American arm Glaxo Inc. moved to Research Triangle Park (US
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headquarters/research) and Zebulon (US manufacturing) in North Carolina.
Burroughs Wellcome and Glaxo merged in 1995 to form GlaxoWellcome.
In the same year, GlaxoWellcome opened its Medicine Research Centre
in Steven age. Three years later GlaxoWellcome bought Polfa Poznan
Company in Poland.
Glaxo Wellcome and SmithKline Beecham announced their intention to
merge on 17 January 2000. Following receipt of necessary regulatory approvals,
the merger was completed in December 2000, forming GlaxoSmithKline
In 2001, GSK completed the acquisition of New Jersey-based Block
Drug for US$1.24 billion. In July 2002 GSK House, located in Brentford, London,
was officially opened as GSK's new world headquarters by then-Prime
Minister Tony Blair.The building was built at a cost of £300 million and is home
to around 3,000 staff. In October 2006 GSK acquired the US-based consumer
healthcare company CNS Inc., whose products included Breathe Right nasal strips
and FiberChoice dietary fibre supplements, for US$566 million in cash. GSK
opened its first R&D centre in China in May 2007, located in Shanghai and
initially focused on neurodegenerative diseases.
Since 2008, GSK has been running clinical trials of new malaria Vaccine.
The vaccine, which is known as RTS, S, has been in development for more than
25 years, at first for the American military and then with major support from the
Bill and Melinda Gates Foundation. The clinical trial is scheduled to continue
through 2014 and will include tests on more than 15,000 children, starting at
infancy.
In February 2009, GSK head Andrew Witty announced that the company
would cut drug prices by 25% in 50 of the poorest nations, release intellectual
property rights for substances and processes relevant to neglected disease into
a patent poolto encourage new drug development, and invest 20% of profits from
the least developed countries in medical infrastructure for those countries.
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The decision has received mixed reactions from medical
charities. Medicines Sans Frontières welcomed the decision, encouraging other
companies to follow suit, but criticized GSK for failing to include HIV patents in
their patent pool, and for not including middle-income countries in the initiative.
In April 2009 GSK agreed to acquire the US-based dermatological
pharmaceuticals company Stiefel Laboratories for US$3.6 billion (£2.5 billion).
On 16 November 2009, the US Food and Drug Administration (FDA) announced
that a vaccine for 2009 H1N1 influenza protection (manufactured by GSK's ID
Biomedical Corp. subsidiary) would join the four vaccines approved on 15
September. In June 2010, the company acquired Laboratories Phoenix, an
Argentine pharmaceutical company focused on the development, marketing and
sale of branded generic products, for a cash consideration of approximately
$253m.
2011 to Present
In February 2011, GSK announced plans to sell some "non-core" brands.
In December 2011, the company agreed to a $660 million deal with Prestige
Brands Holdings, which will take over 17 brands with sales of $210 million,
including BC Powder, Beano, Ecotrin, Fiber Choice, Goody's Powder, Sominex,
and Tagamet. In March 2012 GSK announced plans to invest around £500 million
in manufacturing facilities in Elverson, northern England, designating it as the site
for a previously announced biotech plant. GSK made a US$2.6 billion (£1.6
billion) offer for the United States-based biopharmaceutical company Human
Genome Sciences in April 2012
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Mission
Our global quest is to improve the quality of human life by enabling
people to do more, feel better and live longer. We have a challenging and
inspiring mission to improve the quality of human life by enabling people to do
more, feel better and live longer. By focusing our business around our strategic
priorities, we’re confident that we can fulfill this promise.
Vision
At GlaxoSmithKline we have a challenging and inspiring mission to
improve the quality of human life by enabling people to do more, feel better and
live longer. The key behaviors which distinguish our successful people are
innovative thinking, engaging and developing others, leading people and
achieving excellence.
We carry out our business with the enthusiasm of entrepreneurs, excited
by the constant search for innovation. We also have a strong culture of
performance achieved with integrity. We are confident of attaining our set goals
because our people work bring to the workplace an attitude of passion and
positive energy.
Our Spirit
We undertake our quest with the enthusiasm of entrepreneurs, excited by
the constant search for innovation. We value performance achieved with integrity.
We will attain success as a world class global leader with each and every one of
our people contributing with passion and an unmatched sense of urgency.
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Chapter 2
ANALYSIS OF FINANCIAL STATEMENT OF GSK
Financial analysis (also referred to as financial statement
analysis or accounting analysis or Analysis of finance) refers to an assessment of
the viability, stability and profitability of a business, sub-business or projects.
Ratio analysis is an analytical technique that typically involves a comparison of
the relationship between two financial items.
It is performed by professionals who prepare reports using ratios that
make use of information taken from financial statements and other reports. These
reports are usually presented to top management as one of their bases in making
business decisions.
We've touched on some of the ratios mentioned here in earlier lessons, but
this lesson will give you a comprehensive look at the most important numbers to
key in on. Some ratios can be useful by themselves. Others are completely useless
when considered without context. Typically, financial ratios provide the most
benefit when they are compared with other identical ratios.
A company's ratios are used comparatively in two main fashions: over
time and against other companies. Comparing the same ratios for a firm over time
is a great way to identify a company's trends. If certain ratios are steadily
improving, it may suggest an improvement in a company's operations or financial
situation; conversely, if certain ratios seem to be getting worse, it may highlight
some troubling prospects about the firm.
Financial ratio analysis involves calculating and analysing ratios that use
data from one, two or more financial statements. Ratio analysis also expresses
relationships between different financial statements. Financial Ratios can be
classified into six main categories:
Trend Analysis
Liquidity or Short-Term Solvency ratios
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Leverage Analysis
Profitability Analysis
Activity or Asset Management Ratios
Cash Flow Analysis
Objectives ofRatio Analysis
The calculations of financial ratios have some following
objectives:
• Standardize financial information for comparisons
• Evaluate current operations
• Compare performance with past performance
• Compare performance against other firms or industry standards
• Study the efficiency of operations
• Ratio analysis begins with the calculation of a set of financial ratios
designed to show the relative strengths and weaknesses of a company.
• Ratio analysis helps to show whether the firm’s position has been
improving or deteriorating
• Ratio analysis can also help plan for the future
• The study of percentage changes in financial statement over a time period.
• Trend analysis provides a simple forecasting method.
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Uses and Limitations of Ratio Analysis:
Financial ratios are very helpful to analyze the fiscal position of an
organization but it has some limitation. Ratio analysis is widely used in practice in
business. Teams of investment analysts pour over the historical and forecast
financial information of quoted companies using ratio analysis as part of their
toolkit of methods for assessing financial performance.
Venture capitalists and banker use the ratios featured here and others when
they consider investing in, or loaning to businesses. The main strength of ratio
analysis is that it encourages a systematic approach to analyzing performance.
• Comparison with industry averages is difficult if the firm operates many
different divisions.
• “Average” performance not necessarily good.
• Seasonal factors can distort ratios.
• “Window dressing” techniques can make statements and ratios look better.
• Different operating and accounting practices distort comparisons.
• Sometimes hard to tell if a ratio is “good” or “bad.”
• Difficult to tell whether company is, on balance, in strong or weak
position.
• A firm’s industry category is often difficult to identify
• Published industry averages are only guidelines
• Sometimes difficult to interpret deviations in ratios.
• Relative size is ignored (e.g., both large & small firms can be compared)
• It is assumed that all numbers used are correct (consider both possible
errors and earnings management)
• If the numbers are not reliable, ratios are not particularly useful
• Effects of Inflation
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Income Statement of Glaxo Smith Kline
For the Year Ended 31st December 2007, 2008, 2009, 2010 & 2011
Particulars
2007
£m
2008
£m
2009
£m
2010
£m
2011
£m
Turnover 22,716 24,352 28,368 28,392 27,387
Cost of sales 5,317 6,415 7,380 7,592 7,332
Gross profit 17,399 17,937 20,988 20,800 20,055
Selling, general and administration 6,954 7,656 9,592 13,053 8,826
Research and development 3,327 3,681 4,106 4,457 4,009
Other operating income 475 541 1,135 493 587
Operating profit 7,593 7,141 8,425 3,783 7,807
Finance income 262 313 70 116 90
Finance costs 453 843 783 831 799
Profit on disposal of interest in associate 0 0 115 8 585
Share of after tax profits of associates 50 48 64 81 15
Profit before taxation 7,452 6,659 7,891 3,157 7,698
Taxation 2,142 1,947 2,222 1,304 2,240
Profit after taxation for the year 5,310 4,712 5,669 1,853 5,458
In the following figure, the financial performance of GSK’s five year is
presented. This figure is showing it sale, gross profit, operating profit and net
profit in Millions of Pounds.
In the figure I take the years at X-Axis and values at Y-Axis. First bar is
showing turnover / net sales that is increase year by year. Second bar is showing
gross profit of GSK which is going upward. Third bar is representing the
Operating profit. Fifth bar is shoeing Profit before taxation and the last sixth bar
that is showing Profit after taxation for the year.
0
5,000
10,000
15,000
20,000
25,000
30,000
2007 2008 2009 2010 2011
Amountsin£M
Years
INCOME STATEMENT OF GSK
Turnover Gross profit Operating profit Profit before taxation Profit after taxation for the year
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Balance Sheet of Glaxo Smith Kline
For the Year Ended 31st December 2007, 2008, 2009, 2010 & 2011
Particulars 2007
£m
2008
£m
2009
£m
2010
£m
2011
£m
ASSETS
Non-current assets
Property, plant and equipment 7,821 9,678 9,374 9,045 8,748
Goodwill 1,370 2,101 3,361 3,606 3,754
Other intangible assets 4,456 5,869 8,183 8,532 7,802
Investments in associates and joint ventures 329 552 895 1,081 560
Other investments 517 478 454 711 590
Deferred tax assets 2,196 2,760 2,374 2,566 2,849
Derivative financial instruments 1 107 68 97 85
Other non-current assets 687 579 583 556 525
Total Non-CurrentAssets 17,377 22,124 25,292 26,194 24,913
Current Assets
Inventories 3,062 4,056 4,064 3,837 3,873
Current tax recoverable 58 76 58 56 85
Trade and other receivables 5,495 6,265 6,492 5,793 5,576
Derivative financial instruments 475 856 129 93 70
Liquid investments 1,153 391 268 184 184
Cash and cash equivalents 3,379 5,623 6,545 6,057 5,714
Assets held for sale 4 2 14 16 665
Total Current Assets 13,626 17,269 17,570 16,036 16,167
Total Assets 31,003 39,393 42,862 42,230 41,080
LIABILITIES
Current liabilities
Short-term borrowings 3,504 956 1,471 291 2,698
Trade and other payables 4,861 6,075 6,772 6,888 7,359
Derivative financial instruments 262 752 168 188 175
Current tax payable 826 780 1,451 1,047 1,643
Short-term provisions 892 1,454 2,256 4,380 3,135
Total current liabilities 10,345 10,017 12,118 12,794 15,010
Non-current liabilities
Long-term borrowings 7,067 15,231 14,786 14,809 12,203
Deferred tax liabilities 887 714 645 707 822
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Pensions and other post benefits 1,383 3,039 2,981 2,672 3,091
Other provisions 1,035 1,645 985 904 499
Derivative financial instruments 8 2 0 5 2
Other non-current liabilities 368 427 605 594 626
Total non-current liabilities 10,748 21,058 20,002 19,691 17,243
Total liabilities 21,093 31,075 32,120 32,485 32,253
Net assets 9,910 8,318 10,742 9,745 8,827
EQUITY
Share capital 1,503 1,415 1,416 1,418 1,387
Share premium account 1,266 1,326 1,368 1,428 1,673
Retained earnings 6,475 4,622 6,321 4,779 3,370
Other reserves 359 568 900 1,262 1,602
Shareholders’ equity 9,603 7,931 10,005 8,887 8,032
Minority interests 307 387 737 858 795
Total equity 9,910 8,318 10,742 9,745 8,827
Balance sheet of the GSK is exploring the financial position of all five
financial years. Before jumping on the analysis we should take a look on the
financial performance and position of GSK. The following figure is presenting the
financial position of GSK.
I take the five years at X-axis and values at Y-axis. In this figure the first
bar is showing the total assets, second bar is showing total liabilities and the third
bar is showing total equity of five years of GSK.
31,003
39,393
42,862 42,230 41,080
21,093
31,075 32,120 32,485 32,253
9,910
8,318
10,742 9,745 8,827
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2007 2008 2009 2010 2011
Amountsin£M
YEARS
BALANCE SHEET OF GSK
Total Assets Total liabilities Total equity
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Chapter 3
TREND ANALYSIS (Vertical & Horizontal) OF FINANCIAL
SATETEMENTS OF GSK
Trend analysis is one of the tools for the analysis of the company’s
monetary statements for the investment purposes. Investors use this analysis tool a
lot in order to determine the financial position of the business. In a trend analysis,
the financial statements of the company are compared with each other for the
several years after converting them in the percentage. In the trend analysis, the
sales of each year from the 2008 to 2011 will be converted into percentage form
in order to compare them with each other.
The trend analysis is also called a common-sized analysis of financial
statements that shows the each item is expressed as a percentage of a major
financial statement component. Common size ratios are used to compare financial
statements of different-size companies or of the same company over different
periods. By expressing the items in proportion to some size-related measure,
standardized financial statements can be created, revealing trends and providing
insight into how the different companies compare.
There are two types of trend analysis that are useable to analysis the
financial statements of a company and helpable for financial manager to take a
suitable decision for a good future. Types of trend analysis are following as:
Horizontal Analysis
Vertical Analysis
The trend analysis of financial statements can be used to some basic
purposes such like the following reason:
• Identify key structural changes in a company’s financial
data over a period of time.
• Compare the financial data of firms that vary significantly in
size.
• Compare a company’s financial data to industry norms.
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1) Horizontal Analysis of Financial Statements
Horizontal analysis of financial statements involves comparison of a
financial ratio, a benchmark, or a line item over a number of accounting periods.
This method of analysis is also known as trend analysis. Horizontal analysis
allows the assessment of relative changes in different items over time. It also
indicates the behavior of revenues, expenses, and other line items of financial
statements over the course of time.
A horizontal analysis is used to comparative financial statements to
calculate dollar or percentage changes in a financial statement item from one
period to the next financial period.
Horizontal Analysisof Income Statement
Technique: In this horizontal analysis every item (sales, CGS and profits) of a
year of income statement is divided by its previous year and multiply by 100. All
percentages of 2007 is 100% because it has no bases year that why it’s all items
contain 100% whole year. The base of all years is its proceeding year.
Particulars 2007
%age
2008
%age
2009
%age
2010
%age
2011
%age
Turnover 100% 107% 116% 100% 96%
Cost of Sales 100 121 115 103 97
Gross profit 100 103 117 99 96
Selling, general and administration 100 110 125 136 68
Research and development 100 111 112 109 90
Other operating income 100 114 210 43 119
Operating profit 100 94 118 45 206
Finance income 100 119 22 166 78
Finance costs 100 186 93 106 96
Profit on disposal of interest 0 0 0 7 7,313
Share of after tax profits 100 96 133 127 19
Profit before taxation 100 89 119 40 244
Taxation 100 91 114 59 172
Profit after taxation for the year 100 89 120 33 295
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Comments & Suggestions of Horizontal Analysis of
Income Statement
Turnover/ Sales
The turnover is a net sale of GSK which is at high point of 100% in 2007.
In 2008 it increase to 107% that is good sign for company. In 2009 the sales also
increase from 107% to 116 % that is good condition and the company should
carry on. But in 2010 the sales decrease from 116% to 100% that is shoeing a
poor performance in this year so that company should improve the condition.
In 2011 the sale decrease again and reach at 96% from 100% as compared
to previous year that shows a poor performance in this year. The sale of five year
presented at one point by the following graph.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
20
40
60
80
100
120
2007 2008 2009 2010 2011
100
107
116
100
96
Turnover
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Cost of Sales
The cost of sale is an expense for the company so that it should be less in
every year. In 2007 the cost was 100% that is neutral condition for company. In
2008 the cost increase from 100% to 121% that is poor condition for company
and company should control on its cost of manufacturing.
In 2009 the cost increases from 121% to 115% that is a good sign for GSK
so that the company should carry on their operation by adopting current policies.
In 2010 the cost decrease from 115% to 103 as compared to last year and this is
good thing for GSK. In 2011 the cost decrease again from 6% that is good sign
for GSK and company should follow the same rules.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011
100
121
115
103
97
Cost of sales
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Gross Profit
The gross profit of GSK is that profit in which some expenses are
included. In 2007 the gross profit was 100% and when compares it with next year
in which the gross profit was 103%. This is improvement for GSK and it should
carry on.
In 2009 the company increase it GP from 103% to 117% that is good sign
for GSK and it should carry on. In 2010 the GP decrease from 18% that is poor
performance of this year and company should improve it performance. In 2011
the GP is 96% and decrease it as compare with last year from 3% which is not
good for GSK and GSK should improve it bad conditions to get more profit.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
20
40
60
80
100
120
2007 2008 2009 2010 2011
Gross profit
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Selling, Generaland Administration
Those expenses that are incurred for the selling purposes, general
expenses and administration of GSK. In 2007 the expenses was normal and in
2008 the expenses increased from 100% to 110% that is bad sign for GSK and it
should control it all type of expenses. In 2009 the expenses increase again from
110% to 125% and present poor performance and GSK should maintain its
expenses.
In 2010 company in the expenses reach at highest point of 136% that is
very bad position for GSK it should strictly control its expenses. In 2011 the GSK
improve it condition and reduce it expenses from 136% to 68% that is good thing
for GSK and it should maintain its condition
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011
Selling, general and administration
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Researchand Development
Those expenses that are incurred in research and development department
in 2007 are 100% and in 2008 the expenses increased from 100% to 111% that is
bad sign for GSK and it should control it all type of expenses. In 2009 the
expenses increase again from 111% to 112% and present poor performance and
GSK should maintain its expenses.
In 2010 company in the expenses reach at the point of 109% that is good
position for GSK it should maintain it strategies. In 2011 the GSK improve it
condition and reduce it expenses from 109% to 90% that is good thing for GSK
and it should maintain its condition
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
20
40
60
80
100
120
2007 2008 2009 2010 2011
Researchand development
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Other OperatingIncome
The company gain another operating in 2007 is 100% that is good sign for
company and it should carry on. In 2008 GSK gained more income as compare to
last year is 114% that is good sign for company and it should carry on. In 2009
GSK gained more income as compare to it last year 210% that is good sign for
company and it should carry on.
In 2010 GSK gained less income as its last year 43% that is showing the
poor performance in this year so that company should improve its condition. In
2011 GSK increase it income to 119% that is good thing for company now than it
should maintain it condition.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
50
100
150
200
250
2007 2008 2009 2010 2011
Other operating income
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OperatingProfit
Operating profit is operational income of GSK which is in 2007 it 100%
but in 2008 it decrease from 6% and become 94% that is poor sign for GSK so
company should improve it operations. In 2009 GSK increase its profit from 94%
to 117% that is good performance and it should maintain it.
In 2010 GSK decrease it profit from 117% to 44% and it is poor thing for
company, it should improve its profitability. In 2011 GSK improve its profit from
44% to 206% that is good thing for company and now maintain it.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
50
100
150
200
250
2007 2008 2009 2010 2011
100
94
118
45
206
Operating profit
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Finance Income
In 2007 the finance income of GSK was 100% and increase in 2008 from
100% to 119% that is shoeing good performance of this year so GSK wants to
keep doing. In 2009 GSK decrease its performance from 119% to 22% that is bed
sign for company and GSK should improve its condition.
In 2010 GSK increase its profit percentage from 22% to 166% that is good
sign for GSK and company want to keep doing. In 2011the GSK again decrease
its performance from 166% to 78% that is poor performance of GSK, it should
improve its position.
Finance Costs
In 2007 the finance cost of GSK was 100% and increase in 2008 from
100% to 186% that is showing poor performance of this year so GSK wants some
improvements. In 2009 GSK decrease its cost from 186% to 93% that is good
sign for company and GSK should keep its condition.
In 2010 GSK increase its cost percentage from 93% to 106% that is poor
sign for GSK and company wants to improve it condition. In 2011the GSK again
decrease its cost from 106% to 96% that is good performance of GSK, it should
keep its position.
Profit on Disposalof Interest
In the 2007, 2008 & 2009 GSK earned no profit but in 20010 the profit on
deposal of interest of GSK was 7% and increase in 2011 from 7% to 7313% that
is showing good performance of this year so GSK wants to keep doing.
Share of after Tax Profits
In 2007 the share of after tax profits of GSK was 100% and decrease in
2008 from 100% to 96% that is showing bad performance of this year so GSK
wants to improve. In 2009 GSK increase its performance from 96% to 133% that
is good sign for company and GSK should keep its.
In 2010 GSK decrease its profit percentage from 133% to 127% that is
poor sign for GSK and company want to improve. In 2011the GSK again decrease
its performance from 127% to 19% that is poor performance of GSK, it should
improve its position.
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Profit before Taxation
In 2007 profit before tax of GSK was 100% and decrease in 2008 from
100% to 89% that is showing poor performance of this year so GSK wants to
improve it. In 2009 GSK increase its performance from 89% to 119% that is good
sign for company and GSK should keep its condition.
In 2010 GSK decrease its profit percentage from 199% to 40% that is poor
sign for GSK and company wants some improvements. In 2011the GSK increase
its performance from 40% to 244% that is good performance of GSK, it should
keep its position.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
50
100
150
200
250
2007 2008 2009 2010 2011
100
89
119
40
244
Profit before taxation
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Taxation
In 2007 GSK was paid 100% tax and decrease in 2008 from 100% to 91%
that due to less profit this year. In 2009 GSK increase its profit, that why it paid
tax from 91% to 114% that is good sign for company and GSK should keep its
condition. In 2010 GSK decrease its profit percentage from 114% to 59% that is
poor sign for GSK and company want some improvements.
In 2011the GSK increase its performance so that it paid big amount of tax
that is from 59% to 172% that is good performance of GSK, it should keep its
position.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
20
40
60
80
100
120
140
160
180
2007 2008 2009 2010 2011
100
91
114
59
172
Taxation
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Profit after Taxation for The Year
In 2007 the net income of GSK was 100% and decrease in 2008 from
100% to 89% that is showing poor performance of this year so GSK wants some
big improvements. In 2009 GSK increase its performance from 89% to 120% that
is excellent sign for company and GSK should maintain its condition. In 2010
GSK decrease its profit percentage from 120% to 33% that is bad sign for GSK
and company want some improvements. In 2011the GSK again increase its
performance from 33% to 295% that is good performance of GSK, it should
maintain its position.
The above graph of turnover is showing the increases and decreases in five
years. At the X-Axis five years are mentioned and at the other Y-Axis contains
the percentage variation in sale of GSK. This graph is presenting q quick view of
five year’s performance.
0
50
100
150
200
250
300
2007 2008 2009 2010 2011
100
89
120
33
295
Profit after taxation for the year
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Horizontal Analysisof BalanceSheet
Technique: In this horizontal analysis of balance sheet, every item (sales,
CGS and profits) of a year is divided by its previous year’s item and multiply by
100. All percentages of 2007 is 100% because it has no bases year that why its all
items contain 100% whole year. The base of all years is its proceeding year.
Particulars
2007
%age
2008
%age
2009
%age
2010
%age
2011
%age
ASSETS
Non-current assets
Property, plant and equipment 100% 124% 97% 96% 97%
Goodwill 100 153 160 107 104
Other intangible assets 100 132 139 104 91
Investments in associates and joint
ventures 100 168 162 121 52
Other investments 100 92 95 157 83
Deferred tax assets 100 126 86 108 111
Derivative financial instruments 100 10,700 64 143 88
Other non-current assets 100 84 101 95 94
Total Non-CurrentAssets 100 127 114 104 95
Current Assets
Inventories 100 132 100 94 101
Current tax recoverable 100 131 76 97 152
Trade and other receivables 100 114 104 89 96
Derivative financial instruments 100 180 15 72 75
Liquid investments 100 34 69 69 100
Cash and cash equivalents 100 166 116 93 94
Assets held for sale 100 50 700 114 4,156
Total Current Assets 100 127 102 91 101
Total Assets 100 127 109 99 97
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LIABILITIES
Current liabilities
Short-term borrowings 100 27 154 20 927
Trade and other payables 100 125 111 102 107
Derivative financial instruments 100 287 22 112 93
Current tax payable 100 94 186 72 157
Short-term provisions 100 163 155 194 72
Total current liabilities 100 97 121 106 117
Non-current liabilities
Long-term borrowings 100 216 97 100 82
Deferred tax liabilities 100 80 90 110 116
Pensions and other post benefits 100 220 98 90 116
Other provisions 100 159 60 92 55
Derivative financial instruments 100 25 0 0 40
Other non-current liabilities 100 116 142 98 105
Total non-current liabilities 100 196 95 98 88
Total liabilities 100 147 103 101 99
Net assets 100 84 129 91 91
EQUITY
Share capital 100 94 100 100 98
Share premium account 100 105 103 104 117
Retained earnings 100 71 137 76 71
Other reserves 100 158 158 140 127
Shareholders’ equity 100 83 126 89 90
Minority interests 100 126 190 116 93
Total equity 100 84 129 91 91
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That was the horizontal analysis of balance sheet. Now the following
graph is presenting the asset side of GSK that contains current assets, noncurrent
assets and total assets of GSK.
In this graph the percentage ratio of horizontal analysis is explain at Y-
Axis and the five years are stated at X-Axis. In 2007 all assets (Current, Non-Current &
Total Assets) are 100% because of there was no any base year before the 2007. In 2008
the ratio of all assets are increasing that was a good point for GSK but as the 2009 ended
the GSK decrease its all assets and at that point it is not good position of GSK to pay its
debts.
In 2010 the assets aging decrease but in 2011 current assets of GSK
increases by some little bit percentage. That was not good condition for GSK because
increase should be in all assets not in one type or two type assets
100
127
114
104
95
100
127
102
91
101100
127
109
99 97
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011
%ages
Years
ASSETS SIDE
Total Non-Current Assets Total Current Assets Total Assets
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At the below a graph horizontal analysis of liabilities is presented that is
showing the liability side of GSK. The following graph contains current, non-current
and total liabilities analysis of horizontal. In this graph the percentage ratio of horizontal
analysis of balance sheet is made at X-Axis and the five years are stated at Y-Axis.
Now at the last and important item of balance sheet, total equity is
presented by graph at below. This graph is showing the five years ups and down in
owner’s equity of GSK. At the point of X-Axis the five years are mentioned and a
second Y-Axis percentage of analysis is presented.
100
97
121
106
117
100
196
95
98
88
100
147
103
101
99
0 50 100 150 200 250
2007
2008
2009
2010
2011
%ages
Years
LIABILITIES SIDE
Total liabilities Total non-current liabilities Total current liabilities
100
84
129
91 91
0
20
40
60
80
100
120
140
2007 2008 2009 2010 2011
%ages
Years
Total equity
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2) Vertical Analysis of Financial Statements
Vertical analysis of financial statements is a technique in which the
relationship between items in the same financial statement is identified by
expressing all amounts as a percentage a total amount. This method compares
different items to a single item in the same accounting period. The financial
statements prepared by using this technique are known as common size financial
statements.
A vertical analysis is used for a single financial statement in which each
item is expressed as a percentage of a significant total, e.g., all income statement
items are expressed as a percentage of sales.
Vertical Analysisof Income Statement
Technique: In this vertical analysis of income statement the Net Sale/Revenue
is used as a base and all items are divided by net sale and multiply by 100. So that
the percentage of sale every year would be 100% and other item different.
Particulars
2007
%age
2008
%age
2009
%age
2010
%age
2011
%age
Turnover 100% 100% 100% 100% 100%
Cost of sales 23 26 26 27 27
Gross profit 77 74 74 73 73
Selling, general and administration 31 31 34 46 32
Research and development 15 15 14 16 15
Other operating income 2.091 2.221 4.009 1.736 2.143
Operating profit 33 29 30 13 29
Finance income 1.153 1.285 0.246 0.408 0.328
Finance costs 1.994 3.461 2.760 2.926 2.917
Profit on disposal of interest 0 0 0.405 0.028 2.136
Share of after tax profits 0.220 0.197 0.225 0.285 0.054
Profit before taxation 33 27 28 11 28
Taxation 9 8 8 5 8
Profit after taxation for the year 23 19 20 7 20
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Comments & Suggestions of Vertical Analysis of
Income Statement
Turnover
According to vertical analysis, the percentages of all five years are 100%
because sale is base for all items so that sale is divided by sale and multiply by
100 and become it 100%
Cost of sales
In 2007 the cost of sale is very less part of sale 23% that is good edge for
GSK and GSK wants to maintain the cost. In 2008 the cost of sale increases and
become 26% of sale and GSK should control the cost. In 2009 the GSK maintain
the expenses as like previous year. In 2010 and 2011the cost increased by I %.
0
20
40
60
80
100
2007 2008 2009 2010 2011
100 100 100 100 100
AxisTitle
Axis Title
Turnover
21
22
23
24
25
26
27
2007 2008 2009 2010 2011
23
26
26
27 27
Cost of sales
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Gross Profit
After subtracting the cost from sale, the gross profit of GSK in 2007 was
77% that is decreases in 2008 and become 74% which is not good for company
and GSK should work hard to increases it. In 2009 the gross profit was 74% of its
sale and decreases in 2010 and 2011 by 1% so that GSK should improve its
condition.
OperatingProfit
The operating profit of GSK in 2007 was 33% portion of its sale and
decreases in 2008 and become 29% of its sale. In 2009 profit increases and
become 30% part of its sale but profit decrease in 2010 and reach at the point of
13% portion of its net sales that is not good for GSK so GSK want some
improvement to increases the ratio of profit.
71
72
73
74
75
76
77
2007 2008 2009 2010 2011
77
74
74
73 73
Gross profit
0
10
20
30
40
2007 2008 2009 2010 2011
33
29 30
13
29
Operating profit
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Profit Before Taxation
In 2007 the profit before taxation is 33% of its sale that is decreases in
2008 27% part of sale that is not good sign for GSK. In 2009 company gave good
performance and profit increased by 1 % but it lose its profit in 2010 and become
11% part of sale.
Profit after Taxation for the Year
At the last the net profit of GSK in 2007 was 23% of its sale that decreases
in 2008 to 19% but it increases in 2009 to 20% of its sales. In 2010 GSK earn 7%
net profit of its net sale that is very poor sign for GSK but it improve its position
and reach at the point of 20% in 2011.
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011
33
27 28
11
28
Profit before taxation
0
5
10
15
20
25
2007 2008 2009 2010 2011
23
19 20
7
20
Profit after taxation for the year
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Vertical Analysisof BalanceSheet
Technique: In this vertical analysis of income statement the Net Sale/Revenue
is used as a base and all items are divided by net sale and multiply by 100. So that
the percentage of sale every year would be 100% and other item different.
Particulars
2007
%age
2008
%age
2009
%age
2010
%age
2011
%age
ASSETS
Non-current assets
Property, plant and equipment 25.2 24.5 21.8 21.4 21.2
Goodwill 4.41 5.333 7.84 8.53 9.13
Other intangible assets 14.3 14.89 19.01 20.2 18.9
Investments in associates 1.06 1.401 2.08 2.55 1.36
Other investments 1.66 1.213 1.05 1.68 1.43
Deferred tax assets 7.08 7.0063 5.53 6.076 6.93
Derivative financial instruments 0.0032 0.271 0.15 0.229 0.206
Other non-current assets 2.21 1.469 1.36 1.316 1.27
Total Non-CurrentAssets 56.04 56.16 59.007 62.02 60.6
Current Assets
Inventories 9.87 10.29 9.48 9.085 9.42
Current tax recoverable 0.18 0.192 0.135 0.132 0.206
Trade and other receivables 17.7 15.90 15.14 13.7 13.5
Derivative financial instruments 1.53 2.172 0.300 0.22 0.170
Liquid investments 3.71 0.992 0.625 0.43 0.447
Cash and cash equivalents 10.8 14.27 15.2 14.3 13.9
Assets held for sale 0.012 0.005 0.032 0.037 1.61
Total Current Assets 43.9 43.8 40.9 37.9 39.3
Total Assets 100 100 100 100 100
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LIABILITIES
Current liabilities
Short-term borrowings 11.3 2.42 3.43 0.68 6.56
Trade and other payables 15.6 15.4 15.7 16.3 17.9
Derivative financial instruments 0.845 1.90 0.39 0.445 0.425
Current tax payable 2.66 1.98 3.38 2.47 3.99
Short-term provisions 2.87 3.69 5.263 10.3 7.63
Total current liabilities 33.3 25.4 28.2 30.2 36.5
Non-current liabilities
Long-term borrowings 22.7 38.6 34.4 35.06 29.7
Deferred tax liabilities 2.86 1.81 1.50 1.674 2.0009
Pensions and other post benefits 4.45 7.71 6.95 6.327 7.52
Other provisions 3.33 4.17 2.29 2.140 1.21
Derivative financial instruments 0.025 0.0050 0 0.011 0.0048
Other non-current liabilities 1.186 1.08 1.41 1.40 1.52
Total non-current liabilities 34.6 53.4 46.6 46.6 41.9
Total liabilities 68.03 78.8 74.9 76.9 78.5
Net assets 31.9 21.1 25.01 23.07 21.4
EQUITY
Share capital 4.84 3.59 3.303 3.35 3.37
Share premium account 4.08 3.36 3.191 3.38 4.07
Retained earnings 20.8 11.7 14.74 11.3 8.20
Other reserves 1.157 1.44 2.096 2.98 3.89
Shareholders’ equity 30.97 20.1 23.34 21.04 19.5
Minority interests 0.990 0.98 1.719 2.03 1.93
Total equity 31.91 21.1 25.06 23.07 21.4
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In the below vertical analysis of balance sheet’s assets side is presented in
form of graph that is showing the percentages of total non-current assets, total
current assets and total assets. This graph is short and brief view of the asset’s
condition of GSK.
In the graph of assets side years are presented at X-Axis and the
percentages of all assets is presented on Y-Axis. In vertical analysis total asset is
base that why in all five years all assets would be 100%. But increases and
decrease in non-current assets and current assets is clearly mentioned in graph.
Non-current assets and current assets portion is cleared by graph and the
total assets is also cleared. The asset side of GSK is going well but it should
maintain this position because any uncertainty can decreases its assets and GSK
56.04941457 56.16226233 59.0079791 62.02699503 60.64508277
43.95058543 43.83773767 40.9920209 37.97300497 39.35491723
100 100 100 100 100
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2008 2009 2010 2011
ASSETS SIDE
Total Non-Current Assets Total Current Assets Total Assets
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want to increases it current assets because if any shortage of hard cash occurred
then current assets cover it.
In the below vertical analysis of balance sheet’s liability side is presented
in form of graph that is showing the percentages of total current liability, total
non-current liabilities and total liabilities. This graph is short and brief view of the
liabilities’ condition of GSK.
In the graph of liability side years are presented at X-Axis and the
percentages of all assets is presented on Y-Axis. This graph is a combination
graph of current liabilities, non-current liabilities and total liabilities. The
variations in all type of liabilities is clearly presented by a combined graph that is
showing how many long and short term debts are payable by GSK.
33.36773861
25.4283756
28.27212916 30.29599811
36.53846154
34.66761281
53.4561978
46.66604451 46.62798958 41.97419669
68.03535142
78.8845734
74.93817367
76.92398769
78.51265823
0
20
40
60
80
100
120
140
160
180
2007 2008 2009 2010 2011
LIABILITIES SIDE
Total current liabilities Total non-current liabilities Total liabilities
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GSK should decrease its long term debts because in 2008 they increase
and reach at very high and in other years they are also at high point. The payable
is better but the GSK should maintain its positions.
In the below vertical analysis of balance sheet’s owner’s equity is
presented in form of graph that is showing the percentages of total equity. This
graph is short and brief view of the equity condition of GSK.
The graph of total equity is showing the vertical analysis percentages of
five years in which the years are presented at X-Axis and percentages at Y-Axis.
In the five years only 2007 is that year in which the equity financing is very high
but it decreases by minor differences after the year of 2007.
31.96464858
21.1154266
25.06182633
23.07601231
21.48734177
2007 2008 2009 2010 2011
Total Equity
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Chapter 4
LIQUIDITY ANALYSIS OF STATEMENTS OF GSK
(An Analysis of Short Term Assets)
A liquid asset is one that can be easily converted into cash at a fair market
value. So that liquidity analysis is a class of financial metrics that is used to
determine a company's ability to pay off its short-terms debts obligations.
The liquidity ratios are a result of dividing cash and other liquid assets by
the short term borrowings and current liabilities. They show the number of times
the short term debt obligations are covered by the cash and liquid assets. If the
value is greater than 1, it means the short term obligations are fully covered.
Generally the higher value of the ratio, the larger the margin of
safety that the company possesses to cover short-term debts. A company's
liquidity is its ability to meet its near-term obligations, and it is a major measure
of financial health.
A company must possess the ability to release cash from cash cycle to
meet its financial obligations when the creditors seek payment. In other words, a
company should posses the ability to translate its short term assets into cash. The
liquidity ratios attempt to measure this ability of a company.
Liquidity analysis has many ratios to analysis the financial position of
business but four ratios are very common that are following as:
Current Ratio
Quick Ratio/Acid Test
Cash Ratio.
Working Capital.
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CurrentRatio
A liquidity ratio that measures a company's ability to pay short-term
obligations. The current ratio is the most basic liquidity test. It signifies a
company's ability to meet its short-term liabilities with its short-term assets. A
current ratio greater than or equal to one indicates that current assets should be
able to satisfy near-term obligations. A current ratio of less than one may mean
the firm has liquidity issues.
Purpose: Measures a firm’s ability to pay its current liabilities from
its current assets.
Current Ratio = Current assets / Current liabilities
Particulars 2007 2008 2009 2010 2011
Current Ratio 1.31716 1.72397 1.44991 1.2534 1.07708
In 2007, the company having 1.31716 as total current assets to pay its 1Rs.
total current liabilities. It is good condition because assets are more then 1
In 2008, the company having 1.72397 as total current assets to pay its 1Rs.
total current liabilities. It is good condition because assets are more then 1
In 2009, the company having 1.44991 as total current assets to pay its 1Rs.
total current liabilities. It is good condition because assets are more then 1
In 2010, the company having 1.2534 as total current assets to pay its 1Rs.
total current liabilities. It is good condition because assets are more then 1
In 2011, the company having 1.07708 as total current assets to pay its 1Rs.
total current liabilities. It is good condition because assets are more then 1
1.31716
1.72397
1.44991
1.2534
1.07708
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2007 2008 2009 2010 2011
Current Ratio
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Quick Ratio/Acid Test
The quick ratio is a tougher test of liquidity than the current ratio. It
eliminates certain current assets such as inventory and prepaid expenses that may
be more difficult to convert to cash. Like the current ratio, having a quick ratio
above one means a company should have little problem with liquidity. The higher
the ratio, the more liquid it is, and the better able the company will be to ride out
any downturn in its business.
Purpose: Measures a firm’s ability to pay its current liabilities without
relying on the sale of its inventory.
Current assets - Inventories / Current liabilities
Particulars 2007 2008 2009 2010 2011
Quick or Acid Ratio 1 1.31 1.11 0.95 0.81
In 2007, the GSK have 1Rs as quick assets to pay its 1Rs liabilities. That
is good liquidity position of GSK.
In 2008, the GSK have 1.31Rs as quick assets to pay its 1Rs liabilities.
That is good liquidity position of GSK.
In 2009, the GSK have 1.11Rs as quick assets to pay its 1Rs liabilities.
That is good liquidity position of GSK.
In 2010, the GSK have 0.95 Rs as quick assets to pay its 1Rs liabilities.
That is poor liquidity position of GSK.
In 2011, the GSK have 0.81Rs as quick assets to pay its 1Rs liabilities.
That is poor liquidity position of GSK.
1
1.31
1.11
0.95
0.81
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2007 2008 2009 2010 2011
Quick or Acid Ratio
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Cash Ratio.
The cash ratio is the most conservative liquidity ratio of all. It only
measures the ability of a firm's cash, along with investments that are easily
converted into cash, to pay its short-term obligations. Along with the quick ratio,
a higher cash ratio generally means the company is in better financial shape.
Purpose: Measures a firm’s ability to pay its current liabilities with
hard cash or with those which are equal to cash.
Cash Ratio = Cash or Equalto Cash / (Current Liabilities)
Particulars 2007 2008 2009 2010 2011
Cash Ratio 0.32663 0.56135 0.54011 0.47343 0.38068
In 2007, the GSK have 0.32663 Rs as hard cash to pay its 1Rs liabilities.
In 2008, the GSK have 0.56135 Rs as hard cash to pay its 1Rs liabilities.
In 2009, the GSK have 0.54011 Rs as hard cash to pay its 1Rs liabilities.
In 2010, the GSK have 0.47343 Rs as hard cash to pay its 1Rs liabilities.
In 2011, the GSK have 0.38068 Rs as hard cash to pay its 1Rs liabilities.
0.32663
0.56135
0.54011
0.47343
0.38068
0
0.1
0.2
0.3
0.4
0.5
0.6
2007 2008 2009 2010 2011
Cash Ratio
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Working Capital.
Working capital (abbreviated WC) is a financial metric which
represents operating liquidity available to a business, organization or other entity
including governmental entity. Along with fixed assets such as plant and
equipment, working capital is considered a part of operating capital. Net working
capital is calculated as current assets minus current liabilities.
It is a derivation of working capital that is commonly used in valuation
techniques such as DCFs (Discounted cash flows). If current assets are less than
current liabilities, an entity has a working capital deficiency, also called a working
capital deficit.
Purpose: Measures a firm’s ability to pay its operating liabilities.
Working Capital= Current assets - Current liabilities
Particulars 2007 2008 2009 2010 2011
Working Capital
Ratio
3,281 7,252 5,452 3,242 1,157
In 2007, the GSK have 3281 as working capital to meet daily expenses.
In 2008, the GSK have 7252 as working capital to meet daily expenses.
In 2009, the GSK have 5452 as working capital to meet daily expenses.
In 2010, the GSK have 3242 as working capital to meet daily expenses.
In 2011, the GSK have 1157 as working capital to meet daily expenses.
3,281
7,252
5,452
3,242
1,157
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2007 2008 2009 2010 2011
Working Capital Ratio
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Chapter 5
LEVERAGE ANALYSIS OF STATEMENT OF GSK
(An Analysis of Long Term)
It is long term financially check that how much debt is using to in business
and to checking the long term debt paying ability A company's leverage relates to
how much debt it has on its balance sheet, and it is another measure of financial
health. Generally, the more debt a company has, the riskier its stock is, since debt
holders have first claim to a company's assets. This is important because, in
extreme cases, if a company becomes bankrupt, there may be nothing left over for
its stockholders after the company has satisfied its debt holders.
The most important leverage ratio is the debt to equity ratio that gives you
an idea about the debt one company is in and the equity it has at its disposal.
Leverage ratios also determine the company’s cost mix and its effects on
the operating income. Companies with high fixed cost earn more income because
after the breakeven point, with the increase in output the income increases as the
cost has already been incurred. On the other hand a company with higher variable
cost seems to earn little operating income because with the increase in output the
variable cost increases too.
There are three types of leverage ratio as followings:
Debt / Equity Ratio
Debt / Total Asset Ratio
Interest Coverage Ratio
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Debt / Equity Ratio
The debt/equity ratio measures how much of the company is financed by
its debt holders compared with its owners. A company with a ton of debt will
have a very high debt/equity ratio, while one with little debt will have a low
debt/equity ratio.
Assuming everything else is identical, companies with lower debt/equity
ratios are less risky than those with higher such ratios.
Purpose:
– Measures a firm’s financial leverage.
– Measures percentage of capital being financed through borrowings
– Too high a number means increased risk of bankruptcy
Debt/Equity= (Short-Term Debt + Long-Term Debt) / Total Equity
Particulars 2007 2008 2009 2010 2011
Debt/ Equity Ratio 212.846 373.587 299.013 333.35 365.39
In 2007, the GSK is using 212.84 % debt of its equity.
In 2008, the GSK is using 373.587 % debt of its equity.
In 2009, the GSK is using 299.013 % debt of its equity.
In 2010, the GSK is using 333.35 % debt of its equity.
In 2011, the GSK is using 365.39% debt of its equity.
212.846
373.587
299.013
333.35
365.39
0
50
100
150
200
250
300
350
400
2007 2008 2009 2010 2011
Debt/ Equity Ratio
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Debt / TotalAsset Ratio
Debt Ratio is a financial ratio that indicates the percentage of a
company's assets that are provided via debt. It is the ratio of total debt (the sum
of current liabilities and long-term liabilities) and total assets (the sum of current
assets, fixed assets, and other assets such as 'goodwill').
Purpose: Measures a firm’s financial leverage.
– Measures percentage of assets being financed through borrowings
– Too high a number means increased risk of bankruptcy
Debts/Assets= Total Debts / Total Assets
Particulars 2007 2008 2009 2010 2011
Debt to Total
Assets Ratio
68.0354 78.8846 74.9382 76.924 78.5127
In 2007, the all assets of GSK are financed by 68.0354% of debts.
In 2008, the all assets of GSK are financed by 78.8846% of debts.
In 2009, the all assets of GSK are financed by 74.9382% of debts.
In 2010, the all assets of GSK are financed by 76.924% of debts.
In 2011, the all assets of GSK are financed by 78.5127% of debts.
68.04%
78.88%
74.94%
76.92%
78.51%
62.00%
64.00%
66.00%
68.00%
70.00%
72.00%
74.00%
76.00%
78.00%
80.00%
2007 2008 2009 2010 2011
Debt to Total Assets Ratio
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InterestCoverage Ratio
If a company borrows money in the form of debt, it most likely incurs
interest charges on it. (Money isn't free, after all!) The interest coverage ratio
measures a company's ability to meet its interest obligations with income earned
from the firm's primary source of business. Again, higher interest coverage ratios
are typically better, and interest coverage close to or less than one means the
company has some serious difficulty paying its interest.
Purpose: Indicates the number of times that a firm’s interest expense
is covered by earnings.
– Measure the extent to which operating income can decline before
the firm is unable to meet its annual interest costs
Interest Coverage = (Operating Income) / (Interest Expense)
Particulars 2007 2008 2009 2010 2011
Interest
Coverage Ratio
17.34 8.84 10.84 4.69 9.88
In 2007, the EBIT of GSK is 17.34 Times greater than interest expenses.
In 2008, the EBIT of GSK is 8.84 Times greater than interest expenses.
In 2009, the EBIT of GSK is 10.84 Times greater than interest expenses.
In 2010, the EBIT of GSK is 4.69 Times greater than interest expenses.
In 2011, the EBIT of GSK is 9.88 Times greater than interest expenses.
17.34
8.84
10.84
4.69
9.88
0
2
4
6
8
10
12
14
16
18
20
2007 2008 2009 2010 2011
Interest Coverage Ratio
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Chapter 6
PROFITABILITY ANALYSIS OF STATEMENTS
How good is a company at running its business? Does its performance
seem to be getting better or worse? Is it making any money? How profitable is it
compared with its competitors? All of these very important questions can be
answered by analyzing profitability ratios. It is ability to earn income and
maintain growth in both the short and long-term time periods. A company's
degree of profitability is usually based on the income statement, which reports on
the company's results of operations. There are some following analyses are used
to calculate the profit abilities:
Some background knowledge of the nature of business of a company is
necessary when analyzing profitability ratios. For example sales of some
businesses are seasonal and they experience seasonality in their operations. The
retail industry is example of such businesses. The revenues of retail industry are
usually very high in the fourth quarter due to Christmas. Therefore, it will not be
useful to compare the profitability ratios of this quarter with the profitability ratios
of earlier quarters. For meaningful conclusions, the profitability ratios of this
quarter should be compared to the profitability ratios of similar quarters in the
previous years.
Gross Profit Ratio
EarningsBefore Interest & Taxes Ratio (EBIT)
EarningsBefore Taxes Ratio (EBT)
Net Profit Ratio
Return on Investment
Return on Equity
Return on Assets
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Gross Profit Ratio
You'll recall from our earlier discussion of the income statement that gross
profit is simply the difference between a company's sales of goods or services and
how much it must pay to provide those goods or services. Gross margin is simply
the amount of each dollar of sales that a company keeps in the form of gross
profit, and it is usually stated in percentage terms. The higher the gross margin,
the more of a premium a company charges for its goods or services. Keep in mind
that companies in different industries may have vastly different gross margins.
Purpose: To measure the gross profit of a company.
G.P Ratio = (Gross Profit) / (Sales)
Particulars 2007 2008 2009 2010 2011
G.P Ratio 76.5936 73.6572 73.9848 73.2601 73.2282
In 2007, the GSK is earned 76.5936% gross profit of its net sales.
In 2008, the GSK is earned 73.6572% gross profit of its net sales.
In 2009, the GSK is earned 73.9848% gross profit of its net sales.
In 2010, the GSK is earned 73.2601% gross profit of its net sales.
In 2011, the GSK is earned 73.2282% gross profit of its net sales.
76.59359042
73.65719448
73.98477157
73.26007326 73.22817395
71
72
73
74
75
76
77
2007 2008 2009 2010 2011
G.P Ratio
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Earnings Before Interest & Taxes Ratio (EBIT)
In accounting and finance, earnings before interest and taxes (EBIT), also
called operating profit or operating income is a measure of a firm's profit that
excludes interest and income tax expenses. It is the difference between operating
revenues and operating expenses. When a firm does not have non-operating
income, then operating income is sometimes used as a synonym for
EBIT and operating profit.
Purpose: To measure the earnings before interest and taxes of a company.
EBIT = EBIT / Net Sales
Particulars 2007 2008 2009 2010 2011
EBIT Ratio 34.5792 30.6094 29.9457 13.7327 28.8348
In 2007, the GSK is earned 34.5792% EBIT of its net sales.
In 2008, the GSK is earned 30.6094% EBIT of its net sales.
In 2009, the GSK is earned 29.9457% EBIT of its net sales.
In 2010, the GSK is earned 13.7327% EBIT of its net sales.
In 2011, the GSK is earned 28.8348% EBIT of its net sales.
0
5
10
15
20
25
30
35
40
2007 2008 2009 2010 2011
EBIT Ratio
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Earnings Before Taxes Ratio (EBT)
Earnings before taxes (EBT) can be defined as the money retained by a
company before deducting the money due to be paid as taxes. The Earnings
before Tax quantifies the operating and non-operating profits of a company before
taxes are considered. It is similar to profits before taxes. Moreover,
this performance indicator provides a level measure to compare companies in
distinctive tax jurisdictions.
Purpose: To measure the earning before taxes of a company.
EBT = EBT / Net Sales
Particulars 2007 2008 2009 2010 2011
EBT Ratio 32.8051 27.3448 27.8166 11.1193 28.1082
In 2007, the GSK is earned 32.8051% EBT of its net sales.
In 2008, the GSK is earned 27.3448% EBT of its net sales.
In 2009, the GSK is earned 27.8166% EBT of its net sales.
In 2010, the GSK is earned 11.1193% EBT of its net sales.
In 2011, the GSK is earned 28.1082% EBT of its net sales.
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011
EBT Ratio
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Net Profit Ratio
Net margin considers how much of the company's revenue it keeps when
all expenses or other forms of income have been considered, regardless of their
nature. While net margin is important to take note of, net income often contains
quite a bit of "noise," both good and bad, which does not really have much to do
with a company's core business.
Purpose: Indicates the percentage of each sale that contributes to net
income.
– Relates net income available to common stockholders to sales
Net Margin = (Net Income or Loss) / Sales
Particulars 2007 2008 2009 2010 2011
Net Profit
Ratio
23.3756 19.3495 19.9838 6.52649 19.9292
In 2007, the GSK is earned 23.3756% net profit of its net sales.
In 2008, the GSK is earned 19.3495% net profit of its net sales.
In 2009, the GSK is earned 19.9839% net profit of its net sales.
In 2010, the GSK is earned 6.52649% net profit of its net sales.
In 2011, the GSK is earned 19.9292% net profit of its net sales.
0
5
10
15
20
25
2007 2008 2009 2010 2011
Net Profit Ratio
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Return on Investment
Return on investment (ROI) is performance measure used to evaluate the
efficiency of investment. It compares the magnitude and timing of gains from
investment directly to the magnitude and timing of investment costs. It is one of
most commonly used approaches for evaluating the financial consequences of
business investments, decisions, or actions.
If an investment has a positive ROI and there are no other opportunities
with a higher ROI, then the investment should be undertaken. A higher ROI
means that investment gains compare favorably to investment costs.
Purpose: To measure the efficiency of investment.
Return on Investment = EBIT / Total Debt + Total Equity
Particulars 2007 2008 2009 2010 2011
Return on
Investment
25 19 20 9 19
In 2007, the GSK gained EBIT is 25% of its investment.
In 2008, the GSK gained EBIT is 19% of its investment
In 2009, the GSK gained EBIT is 20% of its investment.
In 2010, the GSK gained EBIT is 9% of its investment.
In 2011, the GSK gained EBIT is 19% of its investment
0
5
10
15
20
25
30
2007 2008 2009 2010 2011
Return on Investment
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Return on Equity
Return on equity is a straightforward ratio that measures a company's
return on its investment by shareholders. Like all of the profitability ratios we've
discussed, it is usually stated in percentage terms, and higher are better.
Purpose: To measure the shareholders, measuring the profits earned
for each dollar invested in the firm's stock.
Return on Equity = (Net Income) / (Shareholders' Equity)
Particulars 2007 2008 2009 2010 2011
Return on
Equity
53.5822 56.6482 52.7742 19.0149 61.833
In 2007, the EBIT of GSK is 17.34 Times greater than interest expenses.
In 2008, the EBIT of GSK is 8.84 Times greater than interest expenses.
In 2009, the EBIT of GSK is 10.84 Times greater than interest expenses.
In 2010, the EBIT of GSK is 4.69 Times greater than interest expenses.
In 2011, the EBIT of GSK is 9.88 Times greater than interest expenses.
0
10
20
30
40
50
60
70
2007 2008 2009 2010 2011
Rerurnon Equity
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Return on Assets
Return on assets measures a company's ability to turn assets into profit.
(This may sound similar to the total assets turnover ratio discussed earlier, but
total assets turnover measures how effectively a company's assets generate
revenue.)
Purpose: To measure of how effectively the firm’s assets are being
used to generate the profit.
Return on Assets = (Net Income) / (Total Assets)
Particulars 2007 2008 2009 2010 2011
Return on
Assets
17 12 13 4 13
In 2007, the EBIT of GSK is 17.34 Times greater than interest expenses.
In 2008, the EBIT of GSK is 8.84 Times greater than interest expenses.
In 2009, the EBIT of GSK is 10.84 Times greater than interest expenses.
In 2010, the EBIT of GSK is 4.69 Times greater than interest expenses.
In 2011, the EBIT of GSK is 9.88 Times greater than interest expenses.
17
12
13
4
13
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011
Return on Assets
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Chapter 7
ACTIVITY / EFFECIENCY ANALYSIS
OR
ASSETS MANAGEMENT RATIO
Asset management ratio measures how effectively the firm is
managing/using its assets. No matter what kind of business a company is in, it
must invest in assets to perform its operations. Efficiency ratios measure how
effectively the company utilizes these assets, as well as how well it manages its
liabilities. Asset management ratios are computed for different assets.
Common examples of asset turnover ratios include fixed asset turnover,
inventory turnover, accounts payable turnover ratio, accounts receivable, and cash
conversion cycle. These ratios provide important insights into different financial
areas of the company and its highlights its strengths and weaknesses.
Asset management ratios are computed for different assets. Common
examples of asset turnover ratios include fixed asset turnover, inventory
turnover, accounts payable turnover ratio, accounts receivable, and cash
conversion cycle. These ratios provide important insights into different financial
areas of the company and its highlights its strengths and weaknesses.
High asset turnover ratios are desirable because they mean that the
company is utilizing its assets efficiently to produce sales. The higher the asset
turnover ratios, the more sales the company is generating from its assets.
Although higher asset turnover ratios are preferable, but what is
considered to be high for one industry, may be low for another. Therefore it is not
useful to compare asset turnover ratios of different industries. Different industries
have different requirements with regard to assets. It would be unwise to compare
an ecommerce store which requires little assets to a manufacturing organization
which requires large manufacturing facilities, plant and equipment.
AccountsReceivable Turnover
AccountsPayable Turnover
Inventory Turnover
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Accounts Receivable Turnover
The receivable turnover ratio (debtor’s turnover ratio, accounts receivable
turnover ratio) indicates the velocity of a company's debt collection, the number
of times average receivables are turned over during a year. This ratio determines
how quickly a company collects outstanding cash balances from its customers
during an accounting period. It is an important indicator of a company's financial
and operational performance and can be used to determine if a company is having
difficulties collecting sales made on credit.
Purpose: To Indicates the length of time normally required to collect a
receivable resulting from a credit sale.
Accounts Receivable Turnover = Revenue / (Accounts Receivable)
In Days = 365 / Accounts Receivable Turnover
Particulars 2007 2008 2009 2010 2011
A/R Turnover 4.13394 3.88699 4.36969 4.90109 4.91159
In Days 88.2935 93.903 83.53 74.4733 74.3141
In 2007, the GSK have 4.13394 Times its A/R turnover and GSK is
converting account receivables into cash within 88 days.
In 2008, the GSK have 3.88699 Times its A/R turnover and GSK is
converting account receivables into cash within 93 days.
In 2009, the GSK have 4.36969 Times its A/R turnover and it is
converting account receivables into cash within 83 days.
In 2010, the GSK have 4.90109 Times its A/R turnover and GSK is
converting account receivables into cash within 74 days.
In 2011, the GSK have 4.91159 Times its A/R turnover and GSK is
converting account receivables into cash within 74 days.
0
20
40
60
80
100
2007 2008 2009 2010 2011
88.29349357
93.90296485
83.53003384
74.4732671274.31409063
A/R Turnover
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Accounts Payable Turnover
Accounts payable turnover ratio is an accounting liquidity metric that
evaluates how fast a company pays off its creditors (suppliers). The ratio shows
how many times in a given period (typically 1 year) a company pays its average
accounts payable. An accounts payable turnover ratio measures the number of
times a company pays its suppliers during a specific accounting period.
Purpose: To measure of how effectively the firm’s assets are being
used to generate the profit.
Accounts Payable Turnover = (Purchases) / (Accounts Payable)
In Days = 365 / Accounts Payables Turnover
Particulars 2007 2008 2009 2010 2011
A/P Turnover 0 1.03885 0.94846 1.03847 1.03655
In Days 0 351.351 384.833 351.478 352.128
Purchases 0 7,409 7,388 7,365 7,368
In 2008, the GSK have 1.03885 Times its A/P turnover and GSK is paying
account payables within 351 days.
In 2009, the GSK have 0.9486 Times its A/P turnover and GSK is paying
account payables within 384 days.
In 2010, the GSK have 1.03847 Times its A/P turnover and GSK is paying
account payables within 351 days.
In 2011, the GSK have 1.03655 Times its A/P turnover and GSK is paying
account payables within 352 days.
0
100
200
300
400
2007 2008 2009 2010 2011
0
299.2812795
334.5668652341.3604888
364.5541531
A/P Turnover
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Inventory Turnover
Inventory turnover is a measure of the number of times inventory is sold
or used in a given time period such as one year. It is a good indicator of inventory
quality (whether the inventory is obsolete or not), efficient buying practices, and
inventory management. This ratio is important because gross profit is earned each
time inventory is turned over. It is also called stock turnover.
Purpose: Indicates the number of times that a firm sells its inventory
each year.
Inventory Turnover = (Cost of Sales) / (Inventory)
In Days = 365 / Inventory Turnover
Particulars 2007 2008 2009 2010 2011
Inventory Ratio 1.73645 1.58161 1.81594 1.97863 1.89311
In Days 210.199 230.778 200.997 184.471 192.805
In 2007, the GSK have 1.73645 Times its inventory turnover and GSK is
converting raw material into finish goods within 210 days.
In 2008, the GSK have 1.58161 Times its inventory turnover and GSK is
converting raw material into finish goods within 230 days.
In 2009, the GSK have 1.81594 Times its inventory turnover and GSK is
converting raw material into finish goods within 200 days.
In 2010, the GSK have 1.97863 Times its inventory turnover and GSK is
converting raw material into finish goods within 184 days.
In 2011, the GSK have 1.89311 Times its inventory turnover and GSK is
converting raw material into finish goods within 192 days.
0
100
200
300
2007 2008 2009 2010 2011
210.1993605
230.7778644
200.99729 184.4711538192.8048282
Inventory Ratio
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Chapter 8
CASH FLOW ANALYSIS
The cash flow ratio is an indicator of the ability of a company to pay
interest and principal amounts when they become due. This ratio tells the number
of times the financial obligations of a company are covered by its earnings. A
ratio equal to one or more than one means that the company is in good financial
health and it can meet its financial obligations through the cash generated by
operating activities.
A ratio of less than one is an indicator of bankruptcy of the company
within two years if it fails to improve its financial position. It is an important
indicator of the liquidity position of a company. This ratio is often used by the
banks to decide whether to make or refinance any loan.
Operating Activity
Operating Activity of Long Term
Cash Flow Margin
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OperatingActivity
The amount of cash flows arising from operating activities is a key
indicator of the extent to which the operations of the entity have generated
sufficient cash flows to repay loans, maintain the operating capability of the
entity, pay dividends and make new investments without recourse to external
sources of financing. Information about the specific components of historical
operating cash flows is useful, in conjunction with other information, in
forecasting future operating cash flows.
Operating Activity = Net Operating Cash / Current Liabilities
In 2007: The company liquidity condition is weak
In 2008: The company liquidity condition is weak
In 2009: The company liquidity condition is weak
In 2010: The company liquidity condition is weak
In 2011: The company liquidity condition is weak
0.595553407
0.719277229
0.647053969
0.531264655
0.416389074
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2007 2008 2009 2010 2011
Operating Activity
Particulars 2007 2008 2009 2010 2011
Operating Activity 0.595553 0.71928 0.6471 0.53126 0.41639
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OperatingActivity of Long Term
The cash flow coverage ratio is an indicator of the ability of a company to
pay interest and principal amounts when they become due. This ratio tells the
number of times the financial obligations of a company are covered by its
earnings. A ratio equal to one or more than one means that the company is in
good financial health and it can meet its financial obligations through the cash
generated by operating activities. A ratio of less than one is an indicator of
bankruptcy of the company within two years if it fails to improve its financial
position.
It is an important indicator of the liquidity position of a company. This
ratio is often used by the banks to decide whether to make or refinance any loan.
Operating Activity of Long Term = Net Operating / Total Liabilities
Particulars 2007 2008 2009 2010 2011
Operating Activity
for Long Term
0.292087 0.23186 0.2441 0.20924 0.19378
2007: The company liquidity condition is weak
2008: The company liquidity condition is weak
209: The company liquidity condition is weak
2010: The company liquidity condition is weak
2011: The company liquidity condition is weak
0.292087422
0.231858407
0.244115816
0.209235032
0.193780424
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2007 2008 2009 2010 2011
Operating Activity for Long Term
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Cash Flow Margin
This ratio compares the operating cash flows a company to its sales
revenue. This ratio gives the analysts and investors indications about the ability of
a company to generate cash from its sales. In other words, it shows the ability of a
company to turn its sales into cash. It is expressed as a percentage.
Ideally there should be a parallel increase in operating cash flows with the
increase in sales. It will be worrisome if the changes in cash flows are not parallel
to the changes in sales revenue. If the cash flows do not increase with the increase
in sales it may indicate the following two factors:
Cash Flow Margin = Net Operating Cash Flow / Net Sale × 100
Particulars 2007 2008 2009 2010 2011
Cash Flow Margin 27.12185 29.5869 27.64 23.9398 22.821
2007: The company generating cash flow 27.12% of its net sale
2008: The company generating cash flow 29.58% of its net sale so company
position is good
209: The company generating cash flow 27.64% of its net sale so company
position is not good
2010: The company generating cash flow 23.93% of its net sale so company
position is good
2001: The company generating cash flow 22.821% of its net sale and company
position is not good
27.12185244
29.58689225
27.64029893
23.93984221 22.82104648
0
5
10
15
20
25
30
35
2007 2008 2009 2010 2011
Cash Flow Margin
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METHODOLOGY OF PROJECT
Firstly make one file of Micro Soft Word and one of Micro
Soft Excel.
Collect the financial statement of company from GSK web
site www.gsk.com.
Copy the income statement, balance sheet & cash flow
statementfrom the PDF file of annual reportof company.
Then past the income statement into sheet 1 and balance
sheet into sheet 2 and cash flow statement into sheet 3 of
Micro Soft Excel.
Calculate the trend analysis of income statement and
balance sheet below the statement by using the formulas.
Calculate the all ratios into sheet 2 and make the graphs
into sheet 4.
In the file of word insert the page number & header and
then place the logo of GCUF into header.
Then write the all topics and collect the some theory of
ratios from internet.
Then copy all the ratio from excel sheets and past them on
Micro Soft Word.
In the segment of bibliography open the PDF file of
annual report and use the tool of snapshoot to take the
snap of financial statements, then copy the statement and
past into Micro Soft Word.
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COMMENTS OF SUPERVISORS
Signature of Supervisor Signature Supervisor
Mr. Ahmad Gillani Mr. Asif Saeed
MS & M.Com (Finance) MS & MBA (Finance)
Signature Supervisor Signature Supervisor
Mr. Amar Abid Mr. Jahanzaib Sultan
JAIBP(Banking) &M.Com MS & MBA (Finance)